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Biggest Calls on Wall Street: UBS Reiterates Nike as Buy, BTIG Upgrades Zscaler, and More
UBS Reiterates Nike as Buy
UBS has expressed bullishness on Nike, stating that the stock could potentially double in value. They believe that Nike's earnings per share (EPS) growth has the potential to surprise investors and drive significant stock price appreciation.
BTIG Upgrades Zscaler to Buy
BTIG has upgraded IT stock Zscaler to a buy rating, based on consistently positive feedback and strong checks. They have introduced a price target of $185 per share for Zscaler and expect further upside potential.
Morgan Stanley Reiterates Apple as Overweight
Morgan Stanley reaffirms their overweight rating on Apple ahead of the company's earnings release. They anticipate that Apple's numbers will exceed expectations, leading to a favorable setup for investors.
Piper Sandler Upgrades Walmart to Overweight
Piper Sandler believes that Walmart has the potential to gain even more market share in the grocery industry as inflation subsides. They have upgraded Walmart to an overweight rating and expect the stock to perform well.
Wells Fargo Names Signet a Top Pick
Wells Fargo has identified jewelry company Signet as a top recovery pick. They anticipate a reset revenue base, an upcoming inflection in engagement trends, and potential catalysts for Signet's shares to increase.
Morgan Stanley Downgrades Progressive to Underweight
Due to negative catalysts, Morgan Stanley has downgraded auto insurer Progressive to underweight. They believe that continued reserve charges impacting earnings will pose challenges for the company.
Goldman Sachs Reiterates Apple as Buy
Goldman Sachs maintains its buy rating on Apple ahead of earnings. They view Apple as a long-term compounder of earnings and free cash flow, with strong growth prospects that justify a premium valuation.
Mizuho Initiates Shift4Payments as Buy
Mizuho has initiated coverage on payments platform company Shift4Payments with a buy rating. They believe that Shift4Payments has positive catalysts that are not fully priced in, potentially leading to significant upside.
Oppenheimer Reiterates Costco as a Top Pick
Oppenheimer has raised its price target on Costco and maintains a top pick ranking. They expect Costco to drive a comp re-acceleration and gain market share in a challenging retail environment.
Citi Reiterates Alphabet as Buy
Citi stands by its buy rating on Alphabet ahead of earnings. They are specifically interested in signs of improvement in the online advertising market and are focused on operating expense leverage.
New Street Upgrades Meta to Buy
New Street has become more bullish on Meta shares and expects potential upside. While they await results, feedback from their Digital Ad Exec Speaker Series suggests a higher likelihood of beating consensus estimates.
Bank of America Downgrades Tractor Supply to Neutral
Bank of America expects an earnings miss from Tractor Supply due to fading inflation tailwinds and weakening demand for discretionary categories. As a result, they have downgraded the stock to neutral.
HSBC Initiates Take-Two Interactive as Buy
HSBC has initiated coverage on video game developer Take-Two Interactive with a buy rating. They highlight Take-Two's consistent track record of developing best-selling sequels and its strong position in the mobile gaming market.
Atlantic Equities Downgrades Disney to Underweight
Atlantic Equities has downgraded Disney to underweight due to ad declines and concerns about the company's direct-to-consumer traction. They estimate a negative impact on operating income in the future.
Citi Downgrades Goldman Sachs to Neutral
Citi believes that the risk/reward for Goldman Sachs is balanced at present levels and has downgraded the stock to neutral. They argue that the current valuation is slightly ahead of historical multiples.
TD Cowen Initiates Warner Music Group as Outperform
TD Cowen has initiated coverage on Warner Music Group with an outperform rating. They expect the company's growth to return to industry levels and view Warner Music Group as a solid investment in the next 12 months.
Wolfe Upgrades Datadog to Outperform
Wolfe has upgraded cloud computing company Datadog based on improving fundamentals. Despite the cost-cutting environment, engineers highly depend on Datadog's services.
Mizuho Reiterates Meta as Buy
Mizuho has increased its price target on Meta and finds the setup favorable heading into earnings. They believe investor expectations are positive and anticipate potential upside.
Baird Initiates Howmet Aerospace as Outperform
Baird sees aerospace company Howmet Aerospace as a best-in-class performer. They expect continued strong revenue growth through 2025, driven by OEM production and high EBITDA margins.
Morgan Stanley Names Elevance a Top Pick
Morgan Stanley has named health insurance provider Elevance as a top pick, citing its strong growth prospects and potential for margin expansion. They expect significant EPS growth driven by commercial and Medicare Advantage margin expansion.
Citi Reiterates Flywire as Buy
Citi believes that payments and foreign exchange company Flywire is a top fintech idea. They expect solid performance in the travel vertical and execution in the second quarter.
Wells Fargo Reiterates IMAX as Overweight
IMAX remains Wells Fargo's favorite stock to play the growing trend towards premium theater experiences. They anticipate strong demand for IMAX systems to continue in the coming years.
Conclusion: Assessing Impacts on a New Business
The latest calls on Wall Street present a mix of opportunities and cautionary notes for investors. For a new business looking to navigate the market, it's essential to consider these trends and tailor strategies accordingly.
One of the standout recommendations is UBS's bullish stance on Nike, suggesting potential doubling in stock value. This emphasizes the importance of establishing strong brand equity and delivering consistent earnings growth. Meanwhile, BTIG's upgrade of Zscaler highlights the growing demand for secure IT solutions, presenting opportunities for new businesses operating in the cybersecurity realm.
On the other hand, caution is necessary when starting a venture in sectors facing potential headwinds. Morgan Stanley's downgrade of Progressive reflects ongoing challenges in the auto insurance industry, signaling the need for careful assessment and adaptation in competitive markets.
It's also important to note the impact of changing market dynamics on businesses. For instance, Piper Sandler's upgrade of Walmart emphasizes the potential for market share growth in the grocery industry as inflation subsides. New businesses should constantly evaluate market trends and consumer preferences to stay relevant.
Furthermore, industry-specific calls, such as HSBC's initiation of Take-Two Interactive as a buy, highlight the importance of identifying niche markets and capitalizing on established strengths.
Ultimately, success for a new business lies in comprehensive market analysis and the ability to position oneself strategically. By keeping a close eye on Wall Street's biggest calls and incorporating the insights they offer, businesses can navigate the evolving landscape and make informed decisions for long-term growth and profitability.
Article First Published at: https://www.cnbc.com/2023/07/25/tuesdays-top-analyst-calls-on-wall-street-like-apple-imax.html.svg)
